Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Take me to the text. Best Cupcakes inc, produces a variety of high-quality cupcakes. The company ust recehed a special order to produce 400 cupcakes

image text in transcribed
image text in transcribed
Take me to the text. Best Cupcakes inc, produces a variety of high-quality cupcakes. The company ust recehed a special order to produce 400 cupcakes with a moditied flavour and frosting. Each regular cupcake costs $3 to produce $2 in total foc variable costs and $1 foc allocated fixed costs that are common to the company). A regular cupcake is priced at $6. Extra cosss for the modilied cupcakes would be as follows - Extra colouring and flavour required for the modified cupcakes cost $0.50 per cupcake. - A new shape of baking mould will need to be purchased for $200 (a one-time cost). The price charged for a modified cupcake is 57.25 each. Best Cupcakes is currently operating at full capacity so the production and sale of a regular cupcake must be given up for each moditied cupcake produced and sold. Should the company accept the order for the modfied cupcakes? Do not enter dollar signs. of cammas in the inout boxes. Round al answsis to.2. decimal nolaces. Foregene Contribution Margin per Cupeake 1 Variable Coot per Cupcake 1 Fixed Cost per Cupcake 5 Total Relevant Costs 4 Accept or Reject: Take me to the tent Sparrow Cafe is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthdiy party for 28 people at a house in the neighbourhoed, 5 taff would have to prepare the food in the cale kischen and then transport it offsie to the party. The chef figures that the regular 3 cooks in the kichen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 1 more cook for the afterncon for 5 hours at $18 per hour. The chef maintains a 3038 food cost accoeding to the annual budget and 4 additional sorvers and a supervisor would be needed to senve food at the party. The party is expected to last 6 hours on Saturday night. Servers earn $16 per hour and the supervisor earns $39,000 per year. The restarrant would also have to rent a truck for $90 to transport the food. If the restarant does not accept the iob, the supervisor will resume normal duties in the cafe for Saturday service. Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food? Pa not enter dollar elans or commas in the incuut baxes. Round allanswers to the nearest ahole number Use the negative sinn for a retloss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley

3rd Edition

0808017233, 9780808017233

More Books

Students also viewed these Accounting questions

Question

Learning is a good thing for everyone. Discuss.

Answered: 1 week ago

Question

What should be the role of managers in HRD?

Answered: 1 week ago

Question

What should be the role of government in HRD?

Answered: 1 week ago